A District Assembly is considering establishing a wood processing plant under the One-District One-Factory program. The initial cost estimation of the plant is GHC 500,000. The District has secured funds at an annual interest rate of 24%. The expected annual free cash flows from the plant are as follows:

Year	Cash Flows($)
1	80,000
2	120,000
3	150,000
4	250,000
5	350,000
6	500,000

Required:

1. Calculate the payback period for this project.
2. What does this figure in (a) mean?
3. Explain the term Net Present Value
4. What is the NPV of the above project? Interpret you result.